International Journal of Trend in Scientific Research and Development (IJTSRD)

International Open Access Journal | www.ijtsrd.com

ISSN No: 2456 - 6470 | Conference Issue – ICDEBI-2018

ICDEBI
INTERNATIONAL CONCONFERENCE
FERENCE ON DIGITAL ECONOMY AND
ITS
TS IMPACT ON BUSINESS AND INDUSTRY
Organised By: V. P. Institute of Management Studies & Research, Sangli

Skill Development for

or MSMES Advancement
Dr. Prakash Ratanlal Rodiya
Assistant Professor, Department of Commerce, Rajarshi Shahu Mahavidyalaya Autonomous
Chandra Nagar, Latur, Maharashtra

ABSTRACT
The present paper is an attempt to understand the
significance of skill advancement for MSMEs. The
purpose of the paper to visualize and conceptualize
the learning profile of lab our strength, segment wise
presentation of skill advancement and list of key skills
in require in various MSME. The data is composed
from secondary sources and the paper will give a
chance for new measurement in the area of MSME
investigation. Adequate skilledd human resources are
one of the key factors for the advancement of any
segment. In case of Indian MSME segment, the
skilled resources are not up to the mark and this has
clearly affected the development of the segment in a
adequate manner. The skill deficiency’s
iency’s are clearly an
issue and it desires particular attention. The segment
which has so much of possible in terms of
employment creation but it has not able to execute in
this regard as deficiency of skill manpower is a main
issue. It is often said that India has the demographic
dividend and dissimilar other developed nation where
dependence ratio is considerably Towering, in case of
India it is low. This major benefit must be altered into
a skilled manpower so that the industry requires can
be made. Today ay the difficulty is not related to
deficiency of employment opportunities, it is
essentially related to the problem of employability.
KEYWORD: MSME, Skill advancement, labour and
manpower.
INTRODUCTION
Formation of business environment is not a simple
task as the entire nation’s socio economic
circumstances has a direct link with this. A nation is
investment welcoming provided the political, social,
technological, legal surroundings are favorable from
the perspective of any kind of potential business
actions. This is not only correct for foreign and Indian
big industries; it is similarly true for small players as
well. As it has been noticed that most of the
manufacturing policy of India, has been paying payi
attention on advancement of heavy industries as it was
based on the concept of trickledown theory; the
profits of the said industrial growth will enrich the
lowest strata of the nation. But it not at all happens in
case of India. The end result is irregular
irreg sharing of
national income and unequal financial advancement.
Today, the segment has come under center area and
lots of initiatives are being implemented so that the
true settlement can be utilized correctly. Here, one
thing that the policy makers must
mus appreciate that the
purpose must be long term and the same need to be
allied with development forecast of the nation as well
as the people living in that part of the nation where
MSME actions are taking place. As the segment
started rising interest among the various stakeholders
it also brings various issues which needs instant
attention so that the true profits can be achieved in a
phased approach. It clear that even after marvelous
government initiatives the section is missing in some
aspects and these issues must be addressed for the
even functioning of the segments. The broad issues as
tinted by the special Prime Minister’s Task Force on
MSME segments are listed underneath
Limited access to equity capital

Troubles in supply to government departments
and agencies

Procurement of raw resources at a competitive
cost

Deficiency of availability of adequate and timely
credit

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International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456-6470

Towering cost of credit

Collateral supplies

Troubles of storage, designing, wrapping and
display of products

Deficiency of admittance
tance to global markets

inadequate infrastructure facilities

Deficiency of access to modern technology

Deficiency of skilled manpower for
manufacturing, services, promotion etc.
Skill progression:
Adequate skilled human resources are one of the key
factors
actors for the advancement of any section. In case of
Indian MSME segment, the skilled capital is not up to
the mark and this has clearly exaggerated the
development of the segment in an enough manner.
The skill deficiencies are clearly an issue and it nee
needs
special attention. The section which has so much of
possible in terms of employment cohort but it has not
able to perform in this regard as absence of skill
manpower is a major issue. It is often said that India
has the demographic bonus and unlike othe other
developed nation where dependency ratio is
substantially Towering,, in case of India it is low. This
main advantage must be transformed into a skilled
manpower so that the industries require can be made.
Nowadays the problem is not related to deficiency oof
employment opportunities, it is essentially related to
the problem of employability. This a major problem
in most of the developing countries where young
generation are educated but they deficit skills which
will help them to become industry prepared. Th The
government of India has taken various short term as
well as long term occupational courses at a variety of
stages of education standard so that the students can
get technical information along with universal
education. This system may not be likely to
implement
plement single handedly by the government alone,
so government has recognized National Skill
Advancement Council (NSDC) an association
instrumental to implement the skill progress initiatives
along with various private players who have the
expertise in the necessary field. Various other
segment skill councils are also developed as the
specific needs of the industry may vary. The idea of
providing guiding the student surely helpful to reduce
the loafer rate at the same time which is a main issue
in case of Indian education scheme, Reaping the
profits of demographic outline looks more of a fantasy
than reality due to amount and excellence gap in
terms of skillful workforce in India. It is estimated
that India will face a necessitate of 500 million
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2456 | IF: 4.101
skillful workers
rkers by 2022.But India is still struggling
with the supply of skilled workforce as currently only
2% of the total personnel in India have undergone
skills training. According to the management of India
estimate, 93% of personnel employment is in the
unorganized
anized or informal segment, which is not
supported by a prearranged skill advancement scheme
No training on employable kills is being given to
young people who can provide them with service
opportunities as per present education system.
Workers in the unorganized
ganized segment are often skilled
in officially or on-the-job.
job. The information channels
and skill advancement procedure are not understood
or not clear. India's labor force constitutes Towering
number of labor force with outmoded skills. The pace
at which economy is rising and the rate of
development that is expected, the challenge will only
augment additional as more than 3/4th of new job
opportunities are expected to be skill based. The loss
of employment and wages throughout the skill
training program also so acts as a disincentive to skill
gaining. The skill advancement environment in India
is quiet complex. The vocational training landscape in
India has been dominated by the public segment.
However, the private segment’s participation and
fame in the skill development space has started to
grow, chiefly in services segment training.
Skill Advancement for MSME:
Young in habitants is the main driving force of any
nations and they are the segments who are vigorously
taking part in nation building procedure. India is a
nation which has a huge population base which
automatically distorted into workable forces. It has
been estimated that in case of India about 800 million
workforces will turn out to be ready to join the
personnel by 2022 and at their this development is
projected to be 12 million yearly year on year growth
of workforce.1 Although India is having the benefit of
demographic dividend but the real problem lies
elsewhere. The office, in their reports suggest that till
date approximately 38% % of the workforce is
uneducated, 25% of the workforce is educated up to
primary level, 36% of the youth is cultured up to
center or Towering height and most importantly only
2% of the workforce has formal vocational training.2
This implies a huge gap in conditions
onditions of require and
supply of skill ful manpower. So, the concept of
demographic dividend can only be utilize provided
the main personnel become manufacturing ready. If
we look at the educational profile of youth workforce
in India in the age group of 15 to 59 years a obvious
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International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456-6470
picture of mismatch can be visible. It can be observed
that as the level of education increase the proportion
of dropout is also increasing simultaneously. In one of
its report of KPMG on Skill Advancement, 2014, it
has calculated that in India, approximately 94 lakh
students are taking admission at the primary level but
only 12 lakh students are ultimately appearing in the
class 12 board examinations. This drop out is across
gender and it is fairly obvious that proportion of
dropoutut is more among women members as compared
to their male counterpart. The graph also suggests that
very few proportions of employable workforces have
technological knowledge. If only 3% of the educated
workforce in the age bracket of 15 to 59 have
technicall information then surely the gap is quite
noticeable and disturbing also. The agenda for skill
advancement is comprehensible and the management
has also rightly documented the need for the same. As
the segment has the potential in terms of employment
generation
ration and overall financial advancement of the
nation, the government of India, has started
implementing various skill advancement initiatives to
meet the shortfalls as emerged under the present
situation.
As the government is more worried about
entrepreneurship
eneurship actions, the first focus has been
given to develop a training programme to train the
educated without a job youth with necessary financial
support so that they become self adequate. The reason
is to create a sustainable income opportunities for tthe
required section along with so as to in near future this
unit may able to generate local service opportunities.
Two separate programmes are implemented by the
central government, viz. Entrepreneurship
Advancement Programmes (EDPs) and
Entrepreneurship Skillkill Advancement Programme
(ESDPs). The programme are prearranged in the
trades like electronics, food processing, sericulture,
pisciculture, poultry agricultural, horticulture etc.
existing skills of the prospective players may not be
adequate to sustain in the volatile business
environment. These are the segment where Towering
potential for growth is there but the respective players
not in a position to nurture the profits as they are not
have been exposed to various technologically
upgraded production facilities.
cilities. This small preparation
can change the entire business environment as it will
help to advance the skills of the labour as well as
entrepreneurs who are willing to expand their
business actions with the assist of small knowknow-how.
To develop a better exposure for entrepreneurship
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2456 | IF: 4.101
progression programmers the administration of India
has recognized The National Institute for
Entrepreneurship & Small Business Advancement
(NIESBUD) in the year 1983 follow by Indian
organization of Entrepreneurship in 1993. These
independent bodies are accountable for advancement
of various training modules as per the prerequisite of
the MSME segments. In order to promote the
entrepreneurial actions the government has introduced
the idea of ‘Assistance to Training Institutions
Institutio (ATI)
to spread the market and business opportunities for
MSME segments. The major thrust area is clearly
linked to rural advancement by creating adequate self
service opportunities in the deprived areas. Till date
the office is able to conduct 4, 611 programmes
p and
provided training to approximately 1, 31, 308
trainees.3As the main purpose of ATI is to create job
opportunities in rural areas as well as urban areas,
some of the segments recognized from the beginning
where the areas have the potential. The Th ministry has
identified many crucial areas anywhere low skill
involvement is a problem and initiatives have been
taken to promote the growth initiatives. The table
below can throw a number of light about the section
wise presentation and the initiatives taken by the
ministry to generate sufficient employment
opportunities for the rural youth. These segments wise
development needs a clear understanding of the
present market need as well as possible that the area is
possessing. Without these two, a proper position
p may
not be likely. The electronic system and IT are the
two major areas where most of the preparation takes
place. The government has organized these training to
ful fill the job prerequisite in urban MSME segments
where requires for technically upgraded
up manpower
resources are of Towering need. As the locations of
the units are urban specific, it is quite understandable
that skill up gradation will also be Towering in these
area. Along with this it can be experiential that the
segment wise spread of trained manpower is not even
and some of the segment it is not even 1%. Though
the segments like equipment and finishing, leather
leath and
leather goods etc. has are re quire in most of the
marketplace and physical places. The information of
people trained in thosese segments is not acceptable. It
can also be observed that even if the purposes of the
government to endorse self service or entrepreneurial
skill progression only 4% of the total trained
resources have got contact in this segment. Some of
the segments likeke automobile, tourism, welcome etc.
have the potential to create self employment
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International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456-6470
opportunities. So more training be compulsory to be
provided to tap these region.
Social Skill Developments:
Social category wise participation is heartening
although compared red to general category the percentage
of trained manpower in SC and ST section is low still
the overall achievement for the economically
background segment is favorable. Skill map is another
important initiative that the management is taking
place and an in depth study has already been
conducted in all the 652 districts of India in this
regard. The idea is to recognize the skill gaps and
preparation requirements so as to meet the need of
local industries located in respective districts. The gap
analysis become
come essential as it leads to create a talent
pool which strengthen the supply of manpower for
MSME section. The aim of the plan is to identify the
training institutes, availability of raw resources and
types of existing industries in the district so that the
right skill gap can be recognized and hence training
programme can be designed for benefit of local
personnel. This requires gap psychoanalysis will
certainly help the various stakeholders to recognize
the section specific training requirement targeted
towards likely beneficiaries. The MSME segment
itself has the potential provided these gaps can be
minimized for an improved development. Measures
taken by administration of India the Government and
manufacturing are well aware of this reality and trying
to figure out solution for the challenges. National
Skills Policy was formulated in 2009 by Government
of India and special budget was also allocated in the
FY 2011-12, 2012-13 13 with an determined target of
imparting skills training to 500 million by 2022. A
National Skill Advancement Corporation Board
(NSDCB) and Prime Minister’s National Skill
Advancement committee was established. NSDCB is
based on Public Private Partnership (PPP) under the
chairmanship of the Deputy Chairman of the Planning
Commission. It for mulate strategies based on the
decision of Prime Minister’s Council on National
Skill Advancement. The location up of autonomous
body National Skill Advancement Agency (NSDA)
was approved on 9thMay 2013. The NSDA is
mandated to work towards coordinat coordination and
harmonization of skill advancement lab ors of the
central and state governments as well as the public
and private-segment
segment industries. It look after policy
changes, scheme reviews, new scheme strategies and
engagement with PSUs and NGOs. The
administration
tration is constantly working to bring the
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2456 | IF: 4.101
required machinery and infrastructure for training.
Initiatives needs a considerable amount of innovative
delivery approaches such as decentralized delivery,
mobile training, distance learning/e-learning
learning/e and web-
based
ased knowledge and capacity growth. Special
courses offering multiple skills have been initiated at
ITIs beneath the Modular Employability Scheme.
People who had informally--acquired skills can get
certification by taking examinations at ITIs. Public
Privatee Partnership is also used quiet extensively
where training programs are sponsor by personal
financial support. Apprenticeship Act has also been
implement by the Government under which every
company has to compulsorily hire a fix number of
apprentices from ITI’s every year to work and trained
the corporation. The apprentice learns hypothesis at
the college and gets hand on knowledge at the
company. This approach helps in alignment of
industry’s obligation for skilled aptitude as company’s
hire the candidate and then train him as per industry’s
requirement. Public preparation institutes are trying to
promote growth of public training institute in difficult
areas anywhere private segment is not accessible.
NSDC has set a target of at least 70% placement
among students on completion of training program so
that the relevance of training imparted by its
associates can be understood by the students. To
improve the dignity of lab or,or media campaign have
also been start by NSDC at the national level.
Government taking one step ahead has made some
international collaboration with developed and
industrialized countries like U.K, Germany, and
Australia etc to swap the ideas for delivery of skills
preparation. UK collaboration are:
The UK Skills meeting (UKISF) India, an initiative
by the UK India Joint financial and Trade Committee
(JETCO), The UK India Business committee acts as
Secretariat for the UKISF. It is also the first point
contact
act for UK skill providers, for India, it is FICCI.
Because in 1958, Germany has already been provide
technical and monetary assistance to develop
institutes like Foreman Training Institute (FTI),
National Instructional Media Institute, Chennai, or
Central Staff Training and examination Institute
(CSTARI).
Sum-up:
It can be seen that an all out attempt is visible from
various players so that the segment can grow but the
problem remains at the implementation level if a
sound monitor amenities unsuccessful to be
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International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456-6470
implement. The rising skill gap is a difficulty and by
2022
022 India may be out of skill labour forces even if it
has adequate provide of manpower. A human resource
without having adequate skills becomes
unemployable. The concern is not related to education
which they are acquiring at various stages. It is
basically
ly related to excellence of education and
friendship of technical aspects which sometimes
missing from the system. As a fast rising developing
economy, in addition white and blue collar, India also
needs Grey collar- information workers which include
ICT skills,
kills, difficulty solving, analytical ad effective
communication skills and rust collar-skilled
skilled worker s
at the grass root level in currently unorganized section
and un-benchmarked
benchmarked segments like construction,
agriculture and related trade. Government, indu industry
leaders are continually from time to time launching
new skill improvement initiatives but some way it is
not reaching the casual workers who dominate the
Indian work-force.
force. Stakeholders (Industry leaders,
Government etc) have realize that none of them can
work in isolation. They will need to collaborate as the
stake concerned is huge. Obligatory Monitoring and
Quality Certifications must be in place which will
ensure Towering standards training programs with
prime focus on ornamental the employability.
Segment specific Lab or Market Information System
(LMIS) at national and state level is to be established
for reducing the skill mismatch which can help in the
dependable and realistic evaluation of monetary
trends and lab or market. Labour market analysi
analysis to be
undertaken by Area specific LMIS at local levels with
the help of Segment Skill council (under National
Skill Advancement Corporation), Supply and require
of skilled manpower can be map with the help of
Human Resource Planning (HRP) which is also one of
the significant constituent. These exercises can help to
anticipate skill gap over a period of time at diverse
levels, segments and geographical areas. A designated
agency must work on generating information from the
LMIS and HRP movements. Administr Administration
employers, national, state and local level training
providers, trainee and prospective trainees must be
dispersed with information so collated so that they can
use it in their skill progression plans. The information
at National level can be disseminated
ated by NCVT by in
receipt of input on or after state and local levels.
Therapy, residency and guidance can be provided by
intensification and upgrading the Employment
dealings. In a male under opponent control
civilization, there has always been a limited scope to
develop their skills for women and girls in country
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2456 | IF: 4.101
areas due to social, economic and cultural constraint.
The payment of wages is also on lower side. Socio-
Socio
economic empowerment of rural women can be attain
by investing in their skill advancement. They can be
provided with basic teaching, technical training and
other women extension services. Hold up by self help
group and NGOs can help in improving their
circumstances by creation them understand the
significance of basic education and also by making
the change in attitude of society towards women. A
designated agency must design the courses and
introduce them at various levels on the basis of
emerging opportunities for skill growth and
employment generation. The change must be brought
from education system which needs to be renovate
and restructured. Young population even after having
degree is not able to fit in the manufacturing due to
deficiency of expertise to compete. The vocational
training must start from Towering School.
School Students
must be complete industry ready by creation the
curriculum for professional coursescourse such as
manufacturing and MBA in a way that provides
complete on the job training. The standard and quality
of training needs to be upgrade,
upgrade Soft skills training
down with technological skills will bring preferred
consequences.
References:
1. Ashu Katyal & Betsy Xaviour (2015); A Study on
MSME’s Role in Propelling Economic
Advancement of India & A Discussion on Current
HR Issues in MSMEs’ in India, International
Journal of Scientific & Investigation.
2. Michael Grimm & Anna Lusia Paffhausen
(2013); Interventions
ions for Employment Creation in
Micro, Small & Medium Sized Enterprises.
3. World Bank Conference on Employment &
Advancement the India Skills Report (2014); CII
Report.
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